You are required to assess the quality of corporate governance within your chosen FTSE100 company (Barclays). The purpose of good

You are required to assess the quality of corporate governance within your chosen FTSE100 company (Barclays). The purpose of good corporate governance is to deal with the agency problem where appropriate and to ensure companies are well run, thereby avoiding many of the well-publicized problems associated with major companies in recent times.

Details of what you are expected to do:

1.  Rationale

The aim of this assignment is to evaluate students’ understanding of critical issues, which have an impact on accountability of a firm particularly with reference to the effect of compliance or non-compliance of corporate governance principles.  A secondary aim is to develop and assess students’ critical appreciation of how globalization impacts the accounting and auditing profession.

2.  The learning outcomes being assessed

ILO 4 will be assessed – The ability to appraise critically the role of accounting and auditing in the arena of corporate governance.

3.  Overview of assignment

Part 1: Corporate Governance (Word Count: 500 words)

You are required to assess the quality of corporate governance within your chosen FTSE100 company (Barclays). The purpose of good corporate governance is to deal with the agency problem where appropriate and to ensure companies are well run, thereby avoiding many of the well-publicized problems associated with major companies in recent times. Among other ways to achieve this, UK Corporate Governance Code (link provided below) suggests that listed companies should have Nomination Committees, Remuneration Committees and Audit Committees. Not only are these structures designed to ensure that monitoring and bonding of the senior executives takes place, but disclosures as to the ability of senior management to maximize profitability and identify and manage risk should also be present.

This part of your assignment should not merely state what the company does, but provide a well-argued assessment of the governance of the company, and whether the objectives and practices of good corporate governance are met by the company.

There will be a lecture on corporate governance. You should also be familiar with The UK Corporate Governance Code and you will find a useful chapter on the subject in Elliot and Elliot, Financial Accounting and Reporting.

The link to the UK Corporate Governance code is:

https://www.frc.org.uk/corporate/ukcgcode.cfm

Your answer must include (but are not limited to) aspects on –

1. Board Characteristics
2. Board Duality issues
3. Board Independence
4. Board Diversity
5. Audit Committees
6. Auditor Independence

Your discussion must be well-constructed and must be supported by extant literature in the area.

Part 2: Global impact of Corporate Governance (1000 words)

With BREXIT upon us it is time global businesses consider the impact of a change in corporate governance regulation and its impact on auditing and accounting practices. In this context consider if ‘convergence’ or ‘divergence’ of corporate governance practices would best serve auditing and accounting practices of a company. Particularly consider three models of corporate governance in your response – US, UK and Germany.